Workers compensation insurance: Almost all laborers know they need it, but do they always understand why or how it works? When a worker is injured at work, or becomes ill because of their job, and can’t work anymore, the company pays them, sometimes for different thing. They can include some or all of these: payment for medical expenses, weekly payment in place of paychecks, payment for any money lost, and so forth. Why does the company agree to pay this to their workers? Is it simply out of charity and goodwill? Perhaps in some situations, but usually if a company agrees to pay these expenses, it is for a specific reason.
You see, it used to be that when a worker was injured on the job and unable to work, they would be fired and replaced. Eventually workers began filing lawsuits to stop this from happening, but even when their bosses mended their ways, many injured filing lawsuits, hoping to gain money for the company’s negligence or for their missed pay. When someone gets workers compensation insurance, they can’t work, and their company pays them in one form or another, they are essentially agreeing not to sue their employers for their accident. This agreement protects both the employee and the company from losing money, time, and work. The company doesn’t get sued and keeps their employee, and the employee has work once they have recovered and is paid in the meantime.